Working Capital Loan Fees & Interest Rates
| Customized Interest Rates | Fair, Transparent – starting from 1.25% per month |
| Processing Fees | 2-5% |
| Loan Tenure | up to 3 years |
| Pre-closure Charges | Pre-closure charges are applicable as per the lender’s policy |
| Eligibility Criteria | > ₹ 90,000 turn over for 3 Months |
| Loan Amount | ₹ 50,000 – ₹ 2 crore |
| Installments | Flexible Monthly / Bi-weekly |
*Based on the health of your business, revenues and annual turnover
**Pre-closures are only allowed after the first EMI is paid in full
To facilitate an easy assessment of your monthly financial obligations, consider utilizing our user-friendly Working Capital Loan EMI calculator.
Eligibility Criteria
- Business operational for more than 3 months.
- Minimum turnover of ₹90,000 in the last 3 months.
- Business not listed under the blacklisted/excluded category for SBA finance.
- The business location should not be in a negative list area.
- Trusts, NGOs, and charitable institutions are ineligible.
Documents Required
- Proof of business operation for over 3 months.
- Financial statements showing a turnover of ₹90,000 for the last 3 months.
- Proof that the business is not blacklisted or excluded for SBA finance.
- Verification of business location outside negative list areas.
Benefits of Working Capital Loan
- Short-tenured Loan: With terms from 1 to 36 months, it’s perfect for covering immediate needs without long-term debt.
- Handle Financial Difficulties: Provides a cushion during cash flow shortages, allowing your business to continue operations smoothly.
- No Collateral/Security Required for Unsecured Loans: Keeps your assets safe while you access the funds needed.
- Helps in Lean Periods: Offers financial stability during seasonal sales fluctuations, ensuring business continuity.
- Spend at Your Discretion: The funds can be used for any business need, offering complete flexibility in managing your operations.
Comparative Analysis of Do’s and Don’ts When Considering a Working Capital Loan
| Aspect | Do | Don’t |
|---|---|---|
| Evaluating Alternatives | Assess other working capital management strategies like reducing expenses and optimizing invoices. | Jump straight to applying for a loan without attempting to improve financial management through internal measures. |
| Strategic Utilization | Have a detailed plan for the utilization of loan funds, specifically for short-term needs. | Borrow without a specific plan, risking the funds on inappropriate expenses or long-term investments. |
| Assessing Business Benefits | Consider the loan’s benefits to your operation’s efficiency and ensure ability to service the loan. | Apply for a loan without evaluating your business’s revenue adequacy for repayments, especially if the business is relatively new. |
Frequently Asked Questions:
The application process is completely online. You can create a free Lendingkart account here or use our mobile app for applying for a small business loan.
You can avail a loan of minimum ₹ 50,000 and maximum ₹ 2 crore for a maximum period of 36 months. The quantum is decided based on your business’s health, revenues and relationship with Lendingkart Finance.
All our working capital loans are unsecured and do not require a security.
If your business satisfies our eligibility criteria and all your documents are in order, the loan will be disbursed to your account within 3 days.
Even if you have CC or OD limit, you can have the evaluation done (there are no charges for the evaluation) so that in case of contingency, you can get funds within 24 hours. Also, in case of exhaustion of CC/OD limit, our funds can be utilized.
Our product can act as a “standby source of funds” in the sense that you can use them for a month or so, or as and when needed.
Working capital loans are short-term loans, meant for purchasing inventory and maintaining day-to-day operations. Normally, we offer loans for a period of 1 to 24 months. However, a further extension of 12 months (total 36 months) can be availed on a case to case basis.
Term loans are generally given for 3-10 years’ duration and are meant for purchase of capital assets. Working capital loan is primarily for inventory and is generally sanctioned for a period not more than 1 year.
It is a score assigned by Credit Bureaus, based on your business’s financial history. It gives us an idea about the credit worthiness of your business and plays a crucial role in determining interest rates.
Yes. We will check your CIBIL rating.
We take PDCs as a security only in case of default. We will cancel and return the PDCs at your instruction once the cycle is over.
We have rescheduling and late payment charges which are 0.1% of the principal amount per day for the number of days of delay. Late payment charges will be levied on the sanctioned/disbursed amount and not the outstanding amount.
NACH is a facility like ECS wherein the amount will be debited from client’s account on the due dates. This will also eliminate the need for creating standing instructions at client’s end. For the first instalment or till the time, NACH is registered with the bank, client will be required to pay the instalments through RTGS/NEFT/IMPS. Once the NACH is registered with the bank, client will get a mail and a call to this effect and thereafter, instalments will be credited to our account through NACH.
No, we do not charge for foreclosure. Only the interest of current month in which foreclosure is done, will be charged. For example, if the loan is of 3 months duration and foreclosure is done in middle of second month, then only the interest for second month will be payable.
Yes, we do. In such cases, we try to understand the nature of services provided by the client and the reliability of their customer base. We also do an assessment of their working capital needs before processing the loan application.
Yes, you can apply for new product while your current loan with us is running, subject to satisfactory credit evaluation.
Cities We Serve
Delhi NCR
Delhi, East Delhi, Gurugram, Faridabad, Ghaziabad, New Delhi, South Delhi, Noida, Rithala
Haryana
Chandigarh, Rohtak, Palwal, Gurgaon, Rewari, Panipat, Kaithal, Karnal
Himachal Pradesh
Shimla, Mandi, Manali, Chamba, Kullu, Rampur
Uttar Pradesh
Lucknow, Agra, Kanpur, Allahabad, Varanasi, Meerut, Jhansi
Punjab
Amritsar, Ludhiana, Jalandhar, Patiala, Firozpur
Uttarakhand
Dehradun, Haridwar, Mussoorie, Roorkee, Kichha
Odisha
Bhubaneswar, Cuttack, Sambalpur, Berhampur
West Bengal
Kolkata, Hooghly, Howrah, Kalyani
Bihar
Patna, Sasaram, Nalanda, Aurangabad, Jahanabad, Siwan, Darbhanga, Buxar
Jharkhand
Ranchi, Jamshedpur, Dhanbad, Deoghar
Gujarat
Ahmedabad, Vadodara, Surat, Jamnagar
Goa
Panaji, Madgaon, Mapuca, Ponda
Rajasthan
Alwar, Jaipur, Ajmer, Behror, Dholpur
Maharashtra
Mumbai, Palghar, Pimpri, Ulhasnagar, Thane, Ahmednagar, Aurangabad, Nashik, Nanded
Telangana
Hyderabad, Ranga Reddy, Khammam
Karnataka
Bangalore, Mangalore, Hubli, Mysore, Shimoga, Davanagere, Gulbarga, Bellary, Belgaum
Andhra Pradesh
Vijayawada, Visakhapatnam, Guntur, Tirupati, Rajahmundry, Kakinada, Amaravati, Kadapa, Nellore, Kurnool, Anantapur
Tamil Nadu
Chennai, Coimbatore, Madurai, Trichy, Salem, Vellore, Erode
Kerala
Ernakulam, Kochi, Thiruvananthapuram, Kollam, Thrissur, Malappuram
NOTE: No processing fees are being charged by Lendingkart before disbursement of the loan amount. Any individual claiming otherwise must not be entertained. Please report such activity on 